Fitch downgrades Schering Plough ratings |
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Tue, 13 Mar 2007 20:58
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NEW YORK (AP) - Fitch Ratings downgraded British drug developer Schering-Plough Corp. Tuesday, citing the company's planned $14.5 billion buyout of Organon Biosciences N.V., part of Akzo Nobel NV.The buyout means the company will need to borrow money to finance the deal, Fitch said.The rating agency placed the company on a 'negative' ratings watch and dropped both the issuer default rating and senior unsecured debt and bank loan ratings to lower medium grade from upper medium grade. The convertible preferred stock rating was downgraded to 'BBB-' from 'BBB+', both of which are lower medium grade ratings. The ratings, all of which are investment grade, apply to about $2.66 billion of outstanding debt.'Fitch will resolve the Rating Watch status as more clarity arises pertaining to the capital structure upon completion of the Organon purchase, which may occur by the end of 2007,' Fitch said in a statement.Shares of Schering-Plough fell 39 cents to $23.57 on the New York Stock Exchange in afternoon trading.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Schering-Plough's ratings downgraded by Fitch, placed on watch negative 